Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1887-05-13
THE DEBT COMMISSION ADJOURNS WITH
OUT ARRIVING At ANY SETTLEMENT.

RICHMOND, VA, May 9.-.The
7 debt commission had two meetings
today. After the meeting in the
I forenoon a rumOr prevailed that
the two sides we're not far apart,
and that a settlement was certain,
while another report was that an
agreement had been reached, and
only awaited final details. This
afternoons session, however, the
proceedings of which have been
made pablo, has resulted in a final
adjournment of the Joint conference
without arriving at any settlement.
Subsequently the Virginia repre-
sentatives held a meeting and ap-
pointed a Subcommittee to prepare
preliminary report on the subject,
to be submitted to the General AS
sembly tomorrow. 4 full report
of the Virginia committee will he
made later.
The subcommittee OF the Viz
ginia debt commissioners had a
three.hours' session tonight and
agreed upon a report to be sub.
mitted to the General Assembly 10.
morrow. From this report 1t az
pears that the last proposition OF
the bondholders' representatives
was that they should have a pm
cipal sum of $685., 1000. This
amount was reached by deducting
from the debt Of the state the Rid
dleberger bonds held by the state.
amounting to S2,2iO, 1000; the bonds
comprised in the literary fund,
amounting to S1,179,O00; bonds
held by the board of public works.
S1G3. 900: the debt due the United
States government, : 800, 900, and
a further deduction Of 5000, 600,
being ten per cent. of the states
debt, evidence Of which they claim
ed bad been lost, and for which no
demand would probably be made
in future. In addition, they de-
mandcd in cash from the state the
sum of 100000, beng 40 per
cent. Of the 60 per cent. of arrear-
ages of interest of the cOnsOl and
10.l0 debt. They also demanded
that the new bonds should be ex-
empt from taxation. state. county,
or corporation that the coupons
should be tax.receivable that al!
expenses incurred or to be incurred
in connection with the present ne
gotiati0n and settlement should be
paid by the state and that after the
expiration Of two years no bonds
should be funded By the state ex-
cept with the consent of the council
of foreign bondholders. To these
demands the legislative committee
responded 10y saying in substance
that the propositions named were
wholly unsatisfactory anu would
be rejected by the people.
The committee, however, still
anxious to reach an agreement,
presented as an ultimatum on their
part the proposition that the prln-
cipal of the debt be fixed approx
mately at S2j,000.00o, 20 be capt
talized upon terms hereafter to be
agreed upon, and to include all the
bonds held by the state, the new
bonds to run for fifty years at 3
per cent. to be redeemabie at the
pleasure of the state after ten
years. and The question Of security
to be left open for further negOtia.
ton. After the receipt of this
communicated from the leg alive
committee the bondholders' repre-
sentatives modified Incorporation
only so far as to exclude the bonds
held by the sinking fund commits.
sioners, 81, 10, 900, proposing that
such bonds should snare with them
their ratable part Of the annual in.
tereSt charge of SSOG,O0 They
further emphaucally declared that
they declined, once for all, any ne
gotiations that would involve a re-
ducton Of the capital Of the consol
and 1910 bonds so as to bring the
total amount within S2j,000,00O.-l
Thereupon the legislative commit
tee adopted and forwarded to the
English commissioners the follow
ing preamble and resolutions
"Whereas the commission on the
part of the foreign bondholders
have stated 10 this committee that
they in substance adhere to the
proposition this day presented by
them, and have rejected the propo.
sition made by this committee, and
declare the former as their ultima
ton: Therefore,
"Rsolr,d, That it be communi.
Gated TO the commission Of the
council Of foreign bondholders that
/ in the opinion Of the Joint commit
tee further negotiations Will not
/ tend TO a final agreement, and that
we feel constrained so to report to
the General Assembly
The Legislative committee will
supplement this with a detailed
statement, which will embody stem
Ographic reports OF all the meetings
OF the two parties.